“Bling-ed up” ex-council properties in some of London’s most pricey addresses are turning their owners into millionaires.
Properties are raking in rents of around £30,000 per year or selling for six to seven figures according to research from high-end lettings specialists E J Harris.
And with London rents forecast to rise by 15.4% over the next five years former tenants can rent their ex-local authority homes for big profits.
E J Harris managing director Elizabeth Harris said: “Ex-council homes are becoming increasingly attractive to tenants as they are often situated in prime locations and benefit from large lateral spaces, which are much larger than modern new build developments. Historically, they were well built and benefit from large secondary bedrooms and high quality finishes.”
Top addresses in London’s West End - where ex-council flats are now let as prestigious private rentals - are: Gilbert Street in Mayfair, Martlett Court in Covent Garden, Weighouse Street in Mayfair, Marshall Street in Soho and Trellick Tower in North Kensington.
Council tenants have been able to rent out their properties following the passing of the Right to Buy bill, in the Housing Act of 1980, which has seen two million ex-council homes across the UK sold since.
A few facts:
- Ex-council properties listed for sale or let are typically listed at a 20% to 25% price discount compared to equivalent private-sector homes
- A one bed ex-council flat in London’s West End can now command a weekly rent of £350 to £400 per week; £1,600 per month; £19,200 per year
- A two bedroom ex-council flat in the West End can command a weekly rent of £500 to £600 per week; £2,400 per month, £28,800 per year
- A tenant could have purchased their prime central London ex-council flat 10 years ago for £100,000 and it is now worth well over £600,000